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The 2020 Africa Agriculture Trade Monitor, the third in this series of flagship reports, presents an overview of trade in agriculture products in Africa and highlights the main impediments that affect intra- and extra-African trade. This year’s report includes chapters focusing on intra-Africa trade integration for agricultural products, including the role of nontariff measures, and on the competitiveness of African value chains that are crucial for food security (cereals, sugar, vegetable oils). The importance and measurement of informal cross-border trade for agricultural products is also examined. The final chapter looks at regional integration experiences in Southern Africa, with a focus on the Southern Africa Development Community. The report offers policy recommendations for improving agricultural exports performance, especially in the context of the unprecedented uncertainty the world is facing with the COVID-19 pandemic.
‘My hope is that people can grow to appreciate this sector – its challenges and opportunities, but most importantly, the role agriculture can play in improving South Africa’s rural economy, creating jobs and bringing about much-needed transformation (or inclusive growth).’ Wandile Sihlobo is perfectly positioned to provide a well-rounded, accessible view of agriculture in South Africa. He spent his school holidays in the rural Eastern Cape, studied agricultural economics at university, has worked in private-sector agriculture, consulting with farmers across the country, and has been an adviser to government as part of South African policymaking bodies. Finding Common Ground is a selection of key articles from Sihlobo’s regular Business Day column, framed with insightful commentary and context. The book covers the broad themes that have marked current discussions and outlines the challenges and opportunities faced by South Africa’s agricultural sector, including: The contentious and complex issue of land reform; The potential for new leadership to revive the sector; How agriculture can drive development and job creation; Cannabis as an exportable commodity; The urgent need for agricultural policy to address gender equity and youth involvement; Technological developments and megatrends that are underpinning agricultural development; The importance of trade in growing South Africa’s agriculture; and Key lessons that South Africa and other African countries can learn from one another. Ultimately, Sihlobo is optimistic about the future of South Africa’s agricultural sector and shows us all – from policymakers to the general public – how much common ground we truly have.
This book provides a thorough introduction to and examination of agricultural value chains in Sub-Saharan Africa. First, the authors introduce the economic theory of agri-food value chains and value chain governance, focusing on domestic and regional trade in (and consumption of) food crops in a low-income country context. In addition to mainstream and heterodox thinking about value chain development, the book pays attention to political economy considerations. The book also reviews the empirical evidence on value chain development and performance in Africa. It adopts multiple lenses to examine agricultural value chains, zooming out from the micro level (e.g., relational contracting in a context of market imperfections) to the meso level (e.g., distributional implications of various value chain interventions, inclusion of specific social groups) and the macro level (underlying income, population and urbanization trends, volumes and prices, etc.).Furthermore, this book places value chain development in the context of a process the authors refer to as structural transformation 2.0, which refers to a process where production factors (labor, land and capital) move from low-productivity agriculture to high-productivity agriculture. Finally, throughout the book the authors interpret the evidence in light of three important debates: (i) how competitive are rural factor and product markets, and what does this imply for distribution and innovation? (ii) what role do foreign investment and factor proportions play in the development of agri-food value chains in Africa? (iii) what complementary government policies can help facilitate a process of agricultural value chain transformation, towards high-productive activities and enhancing the capacity of value chains to generate employment opportunities and food security for a growing population.
During the 1990s, SSA countries initiated agricultural policy reforms to increase producer incentives and increase growth. Yet, agricultural growth rates after the reforms have been uneven. This has been attributed to lack of supporting infrastructure or the inability to respond to incentives by the smallholders. Based on ten studies, this volume provides a different framework to interpret the outcomes. First, it attributes the success of the reforms to the degree of consensus around the reform programs, which in turn, creates the institutions that can accommodate unexpected shocks. It differentiates between short run growth accelerations and sustained growth episodes. Second, it analyzes the impact of international prices which increased during the early 1990 and collapsed around 2000. Finally, it links the support institutions that evolved after the reforms back to the political economy of the stakeholders and their interests. Aksoy and Anil develop a political economy framework by bringing together the issues of consensus over the distribution of rents, role of unexpected changes, and the capabilities of institutions in handling these changes. Onal tests the of supply responses while Onal and Aksoy analyze international commodity prices and their transmission to the producers. Baffes analyzes impact of the adoption of cotton biotechnology in India and China, and the failure of SSA to also adopt. Baffes and Onal undertake a comparative study of coffee sectors in Uganda, and Vietnam which faced similar shocks. Five case studies cover cashew in Mozambique (Aksoy and Yagci), coffee and tea in Kenya (Mitchell), cashew in Tanzania (Mitchell and Baregu), tobacco in Tanzania (Mitchell and Baregu), and cotton in Zambia (Yagci and Aksoy). Results show that Agricultural policy reforms generated an immediate positive supply response. Real producer prices increased along with output. In unsuccessful cases where the short run supply response petered out, political and social consensus on the reforms was weak, and the ability to redistribute income after a negative shock was not built into the new arrangements. These products had been a major instrument for rent distribution before the reforms. The agencies could not be reformed to give greater non price support. In successful cases, there was greater consensus on the reforms program. The product was not a major rent distribution instrument and the producers were allied with the governments. Lower conflict also led to greater non price support. There was enough political and economic space for the parties to find solutions in case of shocks.
Agricultural mechanization in Africa south of the Sahara — especially for small farms and businesses — requires a new paradigm to meet the needs of the continent’s evolving farming systems. Can Asia, with its recent success in adopting mechanization, offer a model for Africa? An Evolving Paradigm of Agricultural Mechanization Development analyzes the experiences of eight Asian and five African countries. The authors explore crucial government roles in boosting and supporting mechanization, from import policies to promotion policies to public good policies. Potential approaches presented to facilitating mechanization in Africa include prioritizing market-led hiring services, eliminating distortions, and developing appropriate technologies for the African context. The role of agricultural mechanization within overall agricultural and rural transformation strategies in Africa is also discussed. The book’s recommendations and insights should be useful to national policymakers and the development community, who can adapt this knowledge to local contexts and use it as a foundation for further research.
How can East and Southern African nations reduce poverty and hunger through agricultural growth? How can they create sufficient market demand to power such growth? This report proposes answers to these questions, applying a general equilibrium framework to the experiences of Madagascar, Malawi, Mozambique, Tanzania, Uganda, Zambia, and Zimbabwe. The authors conclude that, for countries like these, promoting traditional agricultural exports, developing nontraditional exports, and increasing food staple growth will probably not be sufficient to generate a significant level of economic growth. Instead, the model simulations suggest that reductions in marketing costs through improved infrastructure and development of market institutions, along with significant growth in the nonagricultural economy (besides that generated by agricultural growth linkages) are necessary conditions for rapid economic growth. This report's findings are a valuable first step toward understanding how East and Southern African nations can achieve economywide growth and poverty reduction.
Agriculture is a major contributor to Africa's GDP, the region's biggest source of employment and its largest food producer. However, agricultural productivity remains low and buyer-driven global value chains offer few opportunities for small producers to upgrade into higher value-added activities. In recent years, the revival of Africa's cooperatives has been celebrated by governments and international donors as a pathway towards inclusive agricultural development, and this book explores the strengths but also the issues which surround these cooperatives. The book scrutinizes the neoliberal ideal of economic prosperity arising through the operation of liberalized labor markets by illuminating the discriminatory nature of Uganda's informal labor relations. It points to the role of cooperatives as a potential instrument of progressive change in African export agriculture, where large numbers of small producers depend on casual wage work in addition to farming. In contrast to the portrayal, advanced by some governments and rarely questioned by donors, of an unproblematic co-existence of small producers' collective action and big capital interests, the author calls for a re-politicized debate on the Social and Solidarity Economy. As part of this, she highlights the adverse political and economic conditions faced by African cooperatives, including intense international competition in agricultural processing, inadequate access to infrastructure and services, and at times antagonistic state-cooperative relations. Supported by wide-ranging interdisciplinary evidence, including new ethnographic, survey and interview data, this book shows how cooperatives may be co-opted by both the state and corporations in a discourse that ignores structural inequalities in value chains and emphasizes poverty reduction over economic and political empowerment. It provides a critique of New Institutional Economics as a framework for understanding how institutions shape redistribution, and develops a political economy approach to explore the conditions for structural change in African export agriculture.
Policy in Sub-Saharan African countries is linked with the region's agricultural performance. Exchange rate policies, high taxes on agriculture, and government control of export marketing are associated with the deterioration in agricultural export performance in 1970-87. And the policy reforms of the late 1980s - where sustained and effective - are linked with increased agricultural productivity.
The 2024 AATM investigates critical issues related to African agricultural trade. As in previous editions of the report, we have developed a database that corrects discrepancies in trade flow values, as reported by importing and exporting countries, as the basis for analyzing Africa’s international, domestic, and regional economic community (REC) trade. Given the pressing need to address climate change and curb greenhouse gas emissions, this year’s AATM takes an in-depth look at the relationship between climate change, water use, and emissions and African agricultural trade.